Economy grew 8.4% in the 2nd quarter

The GDP growth has been calculated on the basis of the new version of Classification of Economic Activities, EMTAK 2008, and using double deflation. Due to methodological changes in the calculation the GDP yearly growth in the 1st quarter was revised to 9.5%.

Compared to the previous quarter, the seasonally and working-day adjusted GDP grew by 1.7%. Similarly to the year-to-year comparison the GDP growth slowed down also in the quarter-to-quarter comparison. The seasonally and working-day adjusted GDP grew 3.1% in the 1st quarter compared to the previous quarter.

The GDP in the 2nd quarter was 4.02 billion Euros at current prices.

The GDP growth was mostly influenced by the growth of value added of manufacturing which continued in a slightly slower rate. The yearly growth in the 2nd quarter was 33%, in the 1st quarter 47%. The value added of manufacturing grew mainly with the support of exports. The biggest influence on the growth of value added in this activity was manufacturing of computers, electronic and optical products. A big contribution to the GDP growth was also made by the rapid growth of value added of land transport and warehousing and support activities for transportation generated in transportation and storage activity. The increase of excise taxes which are part of net taxes on products had a considerable influence on the GDP growth.

The economic growth was mostly hindered by the decrease of value added of real estate activities, financial and insurance activities and professional, scientific and technical activities.

The value added growth of activities (on the basis of EMTAK 2008), 2nd quarter of 2011

The number of persons employed and hours worked increased in the 2nd quarter compared to the same quarter of the previous year. While the GDP growth was slightly lower than the growth of hours worked, the labour productivity of the total economy per hour worked decreased by 1.7% compared to the same quarter of the previous year. The productivity has been calculated by the resident production units and by seasonally and working-day adjusted figures. The labour costs for the production of the GDP have increased. In the 2nd quarter unit labour costs increased by 0.6% compared to the same quarter of the previous year.

The growth of the domestic demand increased 8%, mainly due to the growth of gross fixed capital formation, changes in inventories and household final consumption. Gross fixed capital formation increased by 15%, primarily influenced by the investments in machinery and equipment of the business sector. The increase of the household final consumption expenditures was influenced mainly by the increase of the food and accommodation services and transport expenditures. Inventories grew largely due to the increase of inventories of goods and materials of the business sector.

The fast growth of export and import continued in the 2nd quarter, although the growth rate has somewhat decreased. The export of goods and services grew by 32% in real terms, of which the export of goods by 41%. The import of goods and services increased by 31%, of which import of goods by 33%. The fast growth of exports and imports of computers, electronic and optical products had the biggest influence on Estonian foreign trade. The export of goods was also significantly supported by the exports of other machinery and equipment, whereas import by the imports of wood and wood products. The share of net exports to the GDP increased to 6.3%. In the 1st quarter the respective figure was still 1.3%.

Statistics Estonia revised the GDP time series data from 2002 onwards. The time series data have been recalculated on the basis of the new Classification of Economic Activities and using double deflation. In addition to before mentioned revisions the reference year for calculating the GDP by chain-linked method was shifted from 2000 to 2005. For additional information about revisions please refer to Statistics > Subject areas > Economy > National accounts > Other information > GDP revision in 2011 (will be released on 23 September 2011).